Market Trends

📈 Accor's research reveals professionals believe revenue could increase by 36% with all key meetings in person. 9,000 professionals globally indicate 85% expect revenue boost from prioritizing face-to-face meetings. One in-person meeting equals three virtual ones in impact, with 41% favoring in-person for business effectiveness. Key reasons for business travel include closing deals (34%), client and contract negotiations (31% and 30%, respectively), and events/trade shows (30%). Despite digital tools, 68% prefer in-person client presentations, with a strong preference for direct interactions in high-stakes situations like deal closures (74%) and negotiations (70%). A hybrid model of digital and in-person meetings is emerging, with a focus on the irreplaceable value of physical interactions for business success.

💰 U.S. hotels are set for a modest growth through 2025 with a 1.5% annual increase in RevPAR. Business travel demand is predicted to rise year-over-year in 2025, while leisure travel is expected to soften. GDP growth is estimated at 2.7% in 2024 and 2.1% in 2025. The lodging industry faces uncertainties from political and economic factors, including the recent election, immigration policies, evolving travel patterns, and tariff changes.

📈 Accor's research, involving 9,000 global professionals, finds a projected 36% revenue increase from in-person meetings. A striking 85% believe prioritizing face-to-face interactions can significantly boost revenue. Professionals estimate 37% more deals closed with in-person meetings, with 81% agreeing on better business outcomes. In-person meetings are deemed more impactful than virtual ones, equating to the effectiveness of three virtual meetings. The primary driver of business travel is closing deals (34%), with client presentations (68%), and contract negotiations (70%) preferred in person. Sophie Hulgard, Chief Sales Officer at Accor, emphasizes the irreplaceable commercial value of face-to-face interaction, suggesting a hybrid future for business interactions.

📢 In Q3 2024, HotelHub reported a 57% drop in European hotel bookings in August compared to June, with major business centers like Italy, Spain, and France seeing declines of 72%, 77%, and 79%, respectively. Despite summer leisure travel, average nightly rates in Europe fell by 11%, with Spain experiencing a 13% reduction and Italy 15% from their June peak.

🏨 On Nov 21, 2024, STR and Tourism Economics revised US hotel forecasts for 2024 and 2025, due to inflation and uncertainty with the Trump administration. US hotel occupancy for 2024 is now projected at 62.9%, with ADR growth at 1.5% and RevPAR growth at 1.4%. For 2025, occupancy is expected at 63%, ADR growth at 1.6%, and RevPAR growth at 1.8%, all lower than previous estimations.